(AOF) – Over the year 2024, the Accor hotel group (+35.80%) dominated the CAC 40, an index which it joined on March 18, replacing Alstom. Accor benefited from favorable operational momentum, raising its annual revenue per available room target (key sector indicator) in July. The latter should increase by 4% and 5%. The company then increased its gross operating surplus forecast in October to between 1.10 and 1.125 billion euros.
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Key Points
– Leading global hotel operator, created in 1967, with more than 40% of the market (excluding France, 1/3 of the market), leader in Asia-Pacific, Middle East-Africa and Latin America;
– Hotel portfolio of 5,600 hotels operated under 45 brands, 10,000 restaurants & bars in 100 countries, from luxury for 26% of revenues under the Fairmont, Raffles, Sofitel brands… to mid-range (34%) and Adagio budget hotels , Ibis, Mercure, Novotel…;
– Activity of €5.1 billion balanced at global level and divided into two divisions: “Premium, Mid-Range & Economy” and “Luxury & Lifestyle”, bringing together concierge service, luxury residence rental or digital services for hoteliers, etc.;
– Two ambitions: in the hotel industry, consolidation of the leadership of Ibis, Novotel and Pullman and densification of the network via the Mövenpick, Mercure, Handwritten and Greet brands / in luxury & lifestyle, strong growth driven by the promotion of the Orient Express brands , Raffles and Fairmont, Sofitel, MGallery, Emblems and Ennismore;
– Capital characterized by the presence of Chinese hotel operators Jin Jiang and Huazhu (respectively 9.6% and 6.5%) and the Qatari fund QiA (8.9%), with a board of 13 directors chaired by general manager Sébastien Bazin.
Challenges
– Agility of the business model: based on the reduction in capital requirements through “asset light” / sale of assets and management control, asset disposal plan by 2025 at AccorInvest / designed for creation of traffic via an extensive portfolio of global brands, distribution maximizing conversion into overnight stays, loyalty and partnerships with distributors such as Amadeus / diversified in services to owners, whose contribution will be positive in 2024 for operating profit / supported by permanent innovation, in processes & tools and organizations: single shared services platform for the 2 divisions, distribution and reservation platform for the ALL loyalty program;
– “Planet 21” environmental strategy targeting 0 carbon in 2050 for Accor hotels: 2025: 25.2% reduction in internal emissions and 15% at suppliers / elimination of single-use plastics, “green loan…”;
– Benefits of the strategic partnership with the Chinese Huazhu Hotels Group, aimed at strengthening the Ibis, Mercure and Novotel brands in China, Taiwan and Mongolia and that with IDeaS for the management of revenues from the business portfolio;
– Controlled financial structure with, at the end of June, €1.9 billion in liquidity and recurring free self-financing of €120 million compared to €2.9 billion in net debt.
Challenges
– Strong exposure to Europe which contributes to almost 40% of operating profit;
– Achievement of strong ambitions in India – around thirty openings by 2028;
– After an 11% increase in turnover and earnings per share on 1
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half-year, 2024 objectives noted: growth of 4 to 5% % of RevPar, gross operating surplus around €1.1 billion;
– 2023-2027 strategy with financial objectives for each of the divisions: “Premium, Mid & Eco”: annual increase of 2.5 to 3.5% of the network, of 2 to 4% of the RevPar, of 4 to 7% of the operating profit; “Luxury & Lifestyle”: annual growth of 8 to 3.5% of the network, of 3 to 5% of RevPar, of 11 to 13% of operating profit / for the group: annual growth of 3 to 5% of the network , 3 to 4% of RevPar and 6 to 10% of operating profit;
– 2023 dividend of €1.18 after share buyback during the 1
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quarter and desire for a return to shareholders of approximately €3 billion between 2023 and 2027.
